Is it more beneficial to my credit to pay my credit card in full each month or to carry a balance? I thought it was best to pay it off each month but I am not sure.
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Discharged 2/27/06, closed 6/1/06
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Its irrelevant. What is important (if you're referring to FICO scoring) is that your utilization is low at whatever point in the month that the credit reports to the bureaus.
Orchard/Household for example reports the balance as of the end of the month. In theory, you could max your card out every month and pay in full on the statement date. Your account is in good condition with Orchard, but if its maxed on the last day of the month then that is what gets reported to the bureaus and your score takes a hit for high utilization.
Determining exactly what is best for FICO is a guess, at best. I've read that having balances under 20-30% is what you want.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.
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